DBS crosses S$200 billion in market capitalisation as earnings optimism drives Singapore bank rally

[SINGAPORE] Shares of Singapore’s three local banks have surged to record levels over the past week, helping lift the Straits Times Index (STI) to a fresh high and pushing DBS above S$200 billion in market capitalisation on Monday (Jul 13) – making it the first Singapore-listed company to cross that threshold.

Analysts told The Business Times that the rally could have more room to run, buoyed by increasing investor optimism ahead of the lenders’ second-quarter results due in early August.

A clearer earnings outlook as well as improvements in the interest rate environment likely drove the share price rally over the past week, with potential for further increases if the banks provide positive guidance when they post their results, they added.